£55k in current account

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I am looking to buy a property in say a years time. I £55k to spend but it is currently in a HSBC current account. Can anybody advise as to where to put it?
I've looked at the B&B online savings account (5.38% AER), Is this a good savings account? and how much interest would i earn over a year? What would happen if i needed the money sooner?

sergeant121

HSBC pay a RIP-OFF 0.1% on current account credit balances (a criminal £55 gross per annum on £55k) so, whatever you decide, move that money somewhere more profitable as soon as possible.

In the account you suggest, that £55k would earn you about £3000 gross in a full year but the best thing is to read up on this site and decide where would be best to 'stash the cash'.  You may then decide not to save it all in one place so as to maximise income (e.g. to avoid such things as a reversion to 0.1% interest on a balance of over £30,000).

Start HERE and be enlightened!

Good luck!

Robert_Sterling_3

£55,000 @ 5.38% gives you £2959 pre-tax or £2367.20 after tax or £1775.40 if it is all taxed at 40%

With no notice access that looks well OK as we say in my neighbourhood.

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Thankyou both very much for your advice!!! Application filled out and waiting for reply. One last question, is it worth (and can it be done) setting up a "regular" savings account and transfering a monthly amount from the B&B. Is it worth the hassle?

Reaper

Regular savings accounts are best set up with standing orders, otherwise you have you have to remember to make the transfer yourself every month (and there are usually penalties if you miss one).

Generally savings accounts do not allow standing orders, whereas bank accounts do. You need to check if the account you are opening allows them. If it does not then it is probably not worth the hassle, but it's up to you.